BTC and ETH saw over $1.2 billion in outflows in a week. Are big investors in no rush to buy? Can prices still rise from here?
The crypto market is hoping big investors will step in to buy the dip, but at the same time, money is flowing into cash-like assets.
From October 5 to 9, U.S. spot BTC ETFs saw net outflows of about $680 million, while ETH ETFs saw net outflows of about $542 million, for a combined total of roughly $1.22 billion. As of October 9, ETH had posted net outflows for nine consecutive trading days.
Meanwhile, in the week ending October 7, U.S. money market funds attracted $68.49 billion, while equity funds saw outflows of $5.11 billion. Reuters noted that rising Treasury yields and elevated oil prices are influencing investors' choices.
ETF buying is cooling, reflecting a broader shift in market risk appetite. When investors can earn a return simply by holding cash, big investors naturally feel less urgency to chase a rally.
The market's next move will also depend on oil prices and CPI. If oil prices keep climbing, inflation concerns could intensify. If CPI comes in higher than expected, interest-rate pressures could continue to weigh on BTC and ETH. Conversely, if oil prices pull back and CPI comes in below expectations, a rebound is more likely to attract investor support. I'll be watching these two factors alongside ETF flows to see when buyers are willing to return.
I'm still bullish in the long term. For short-term additions, I'll wait for outflows to narrow and prices to stabilize. When everyone is calling it cheap, what I really want to know is: who's actually starting to buy?
The crypto market is hoping big investors will step in to buy the dip, but at the same time, money is flowing into cash-like assets.
From October 5 to 9, U.S. spot BTC ETFs saw net outflows of about $680 million, while ETH ETFs saw net outflows of about $542 million, for a combined total of roughly $1.22 billion. As of October 9, ETH had posted net outflows for nine consecutive trading days.
Meanwhile, in the week ending October 7, U.S. money market funds attracted $68.49 billion, while equity funds saw outflows of $5.11 billion. Reuters noted that rising Treasury yields and elevated oil prices are influencing investors' choices.
ETF buying is cooling, reflecting a broader shift in market risk appetite. When investors can earn a return simply by holding cash, big investors naturally feel less urgency to chase a rally.
The market's next move will also depend on oil prices and CPI. If oil prices keep climbing, inflation concerns could intensify. If CPI comes in higher than expected, interest-rate pressures could continue to weigh on BTC and ETH. Conversely, if oil prices pull back and CPI comes in below expectations, a rebound is more likely to attract investor support. I'll be watching these two factors alongside ETF flows to see when buyers are willing to return.
I'm still bullish in the long term. For short-term additions, I'll wait for outflows to narrow and prices to stabilize. When everyone is calling it cheap, what I really want to know is: who's actually starting to buy?